Professional Documents
Culture Documents
Downstream,
Catalyzing
Growth
Annual
Report
2021
In the Name of Allah the Most
Gracious the Most Merciful
King HRH Prince
Salman bin Abdulaziz Al Saud Mohammed bin Salman
bin Abdulaziz Al Saud
Custodian of the Two Holy Mosques
Crown Prince, Deputy Prime Minister
and Minister of Defense
Annual Report 2021
Contents
Table of
01 02 03 04
Overview Chairman’s CEO’s Board Members
Message Message & Org. Chart
P 08 - 13 P 14 - 15 P 16 - 17 P 18 - 21
05 06 07 08
Financial Market Major Recognitions
Performance Review Achievements & Awards
P 22 - 23 P 24 - 25 P 26 - 49 P 50 -51
09 10 11 12
Sadara Corporate Social Human Media &
Presence Responsibility (CSR) Resources Communication
P 52 - 57 P 58 - 65 P 66- 69 P 70 - 73
06 07
Annual Report 2021
Overview
Annual Report 2021
Sadara is the only chemical company in the Kingdom – and indeed in the entire
Gulf – that uses best-in-class technologies to crack refinery liquids and gases.
With a Mixed Feed Cracker (MFC) that also cracks ethane gas, Sadara can adjust
to varying economic and market conditions. By cracking liquids, Sadara
enables downstream industries that either do not exist in the Kingdom or exist
only through imports of raw materials.
Fourteen of Sadara’s plants are new to Saudi Arabia and their products are
being made in the Kingdom for the first time. By bringing state-of-the-art
technologies to create new products, Sadara adds new value chains to enrich
the Kingdom’s existing chemicals landscape.
In another first for the Gulf region, Sadara began producing toluene
diisocyanate (TDI). TDI is mainly used in the production of flexible polyurethane
foam for furniture, mattresses, cushioning and car seats. It also has a variety of
industrial uses, such as coatings, adhesives, sealants and specialty foams.
The adjacent PlasChem Park, a unique collaboration between Sadara and the
Royal Commission for Jubail and Yanbu, began to create more value
downstream, offering the prospect of unprecedented investment, innovation,
economic growth and thousands of jobs.
10 11
Annual Report 2021
Mission Objectives
Producing chemicals via 1. First Quartile Environment, Health and
innovative technologies and Safety Performance
operational excellence to enable 2. Workforce Development
value-added products, improved 3. Operational Excellence
quality of life and a diversified 4. Value Creation and Growth
Saudi economy.
12 13
Annual Report 2021
Chairman’s
contributing greatly to the Downstream Transformation in the
Kingdom of Saudi Arabia.
Message Under the wise direction of the Custodian of the Two Holy Mosques
King Salman bin Abdulaziz Al Saud and the conscientious
leadership of His Royal Highness Crown Prince Mohammed bin
Salman Al Saud, the Kingdom has embarked on a national
industrial evolution, building a downstream sector to serve our
nation’s traditional upstream oil and gas strengths.
Ahmad Al Sa'adi
Chairman of the Board of Directors
14 15
Annual Report 2021
The year 2021 saw the completion of the Ethylene Oxide (EO) and
Propylene Oxide (PO) pipeline and distribution center connecting
our Jubail chemical complex to PlasChem Park. The Wasit natural
gasoline pipeline was also completed, enabling Sadara to receive
natural gasoline from Saudi Aramco, complementing sea
shipments, and helping to make more space available at King Fahd
Industrial Port (KFIP) berths. In 2021, we also saw the completion of
SABIC’s integration as second marketer for Sadara.
CEO’s
At the same time, we maintained our focus on sustainability,
ensuring that Sadara remains a global industrial leader in
environmental protection, health, safety, and energy conservation.
16 17
Annual Report 2021
Board
Members
18 19
Annual Report 2021
Organizational
Structure
Management Committee
Finance
Alejandro Farre
Legal
Feras Saeed
General Counsel
Manufacturing &
Engineering
Gonzalo Beltran
Vice President
Environment, Health,
Safety & Security
Dr. Faisal M. Al Faqeer Wayel Y. Osailan
Executive Director
20 21
Annual Report 2021
Financial Sadara Chemical Company (Sadara) recently announced its 2021 financial
performance, stating that the company’s sales reached SAR 17.6 billion — 67.7% higher
Performance than in 2020 and reflecting an important milestone of over SAR 3.1 billion Net Profits
after Zakat & Tax – the first ever in the company’s history. These results mark Sadara’s
completion of its fourth full year of operations and reflect its ongoing commitment to
delivering world-class, high-quality products in the Kingdom and beyond.
The increase in net profit in 2021 compared to the previous year is mainly attributable
Net Sales Net Profit Production Volume
Sadara’s CEO, Dr. Faisal Al-Faqeer, said on this occasion: “I’m so proud of Sadara’s team
2021 Financial Results and its outstanding performance. Despite the local and global challenges posed by
the COVID-19 coronavirus pandemic and in the midst of an incredibly dynamic and
Sales Volume (Kt) Revenue / Gross Sales EBITDA volatile business environment, Sadara has managed to safely and reliably operate its
facilities and maintain financial discipline and controls. This was manifested in the
2,972 Kt SAR 19.5 bn SAR 7.5bn successful completion of the Isocyanate Major Turnaround ahead of schedule with
zero safety incident.”
kt / SR -144 kt kt / SR SAR 7.5 bn kt / SR SAR 5.3 bn Dr. Al-Faqeer added: “The additional challenge that Sadara has successfully navigated
Delta Delta Delta
% -5% % 61% % 249% was the introduction of SABIC as a second marketer beside the Dow Chemical
Company. It is our hope to leverage both titans’ prominent positions in the global
petrochemical environment to further enhance the company’s business model and
Net Sales Net Profit / (Loss) add value to its end customers.”
after Zakat &Tax
17.6 bn 3.1 bn
Sadara has succeeded in establishing itself as one of the preferred suppliers within the
Kingdom, reducing the country’s reliance on imports and ensuring the highest level of
SAR SAR
service through increased competition.
22 23
Annual Report 2021
Market
Review
24 25
Annual Report 2021
Major
Achievements
Annual Report 2021
January
28 29
Annual Report 2021
February
30 31
Annual Report 2021
March
The panel awarded Sadara the Corporate Social Responsibility Prize, for
Supporting the Ministry of Health and the Health Sector in Assisting the
Kingdom's Efforts to Limit the Spread of the New Coronavirus (COVID-19).
SR 5 million 100,000 kg
Donated to preventing COVID-19 Of Ethanol was produced
spread in KSA to fulfill the local demand
32 33
Annual Report 2021
April
Under the 20-year contracts, Sadara will supply the feedstock chemicals to
SADIG-ILCO's future chemical manufacturing facility in PlasChem Park. This
facility will offtake EO and PO from Sadara through the Sadara EO and PO
pipelines. Using these products, SADIG-ILCO will manufacture a range of
specialty chemicals to further enable production of market-ready products in
several areas, including coatings and adhesives, personal care products and
many other industrial applications.
34 35
Annual Report 2021
June
36 37
Annual Report 2021
July
Citing Sadara's strong progress towards those goals, the report noted that the
company has installed green mesh in the grated water trenches to prevent
pellets escaping to the water flow. Green mesh has also been installed in water
trenches without grating, the report said. Sadara's overall OCS performance
showed a 0.49 percent improvement in the first quarter of this year and 0.38
percent improvement for the first half of 2021.
38 39
Annual Report 2021
August
40 41
Annual Report 2021
September
42 43
Annual Report 2021
10
October
70 72
Trucks loaded in Trucks dispatched
one day in one day
44 45
Annual Report 2021
11
November
Sadara will now perform testing, repair and certification of all pressure relief
devices in-house, minimizing reliance on outside contractors and delivering a
large cost reduction for Sadara.
46 47
Annual Report 2021
12
December
Isocyanates Turnaround
completed
Sadara announced the successful completion of the Isocyanates Turnaround
(TA) – a major undertaking and the first of its kind in Sadara – with no
Environment, Health and Safety (EHS) incidents.
48 49
Annual Report 2021
King Khalid
Sustainability Award:
1st
Place in profit
organizations and
companies
Princess
Recognitions
Seetah Award:
Social wrok in
And Awards
the CSR category
50 51
Annual Report 2021
Sadara
Presence
Annual Report 2021
01 03
Sadara’s CEO accepts Sadara wins RC Environmental
King Khalid Award Performance Award
Sadara’s CEO accepted on behalf of Sadara the King Khalid Award for Sadara won first place in the Royal Commission for Jubail and Yanbu (RCJY)
Sustainability. Environmental Performance Awards for 2020 for the best environmental
performance in the Primary Industry category.
02 04
Sadara wins 2020 Princess Seetah Award for Sadara plays big role in Asharqia
social activities against COVID-19 Chamber Logistics Forum
Sadara won Princess Seetah Award for 2020 entitled "Social Work in Sadara was official sponsor and a major participant in the 2021 Logistics Forum
Countering Crises and Risks" for the company's activities in battling the in Dammam in November, organized by Asharqia Chamber of Commerce.
COVID-19 coronavirus pandemic.
54 55
Annual Report 2021
05 07
Sadara contributes in the Lifelong Sadara plays major role in Riyadh
Learning award conference on industrial safety
Sadara was honored for its contribution to Lifelong Learning at a ceremony Wayel Osailan, executive director of Environment, Health, Safety and Security,
hosted by the Royal Commission for Jubail and Yanbu. Sadara is a member of led Sadara's participation in the Saudi International Conference for Industrial
the Jubail Lifelong Learning Committee. Safety, held in Riyadh.
06 08
Sadara CEO and team take part in Sadara Volunteer Club joins
Dubai’s GPCA Forum world volunteering celebration in Jubail
Sadara CEO Dr. Faisal AlFaqeer attended the 15th Annual Gulf Petrochemicals The Sadara Volunteer Club (SVC) participated in a celebration of International
and Chemicals Association (GPCA) Forum in Dubai, UAE, a gathering that Volunteer Day held in Jubail at the invitation of the Social Services Department
focused on reinvigorating the chemical industry in the post-COVID-19 era. of the Royal Commission in Jubail.
56 57
Annual Report 2021
Corporate
Social
Responsibility
(CSR)
Annual Report 2021
01 03
Innovative Environmental Solutions Competition Sadara team works in off-site cleanup
Held for the fourth consecutive year in collaboration with the Royal Volunteers from Sadara teamed to conduct a cleanup outside the Sadara fence, in
Commission for Jubail, the competition aims to encourage talented the latest stage of an ongoing campaign under the Waste Free Environment (WFE)
individuals and groups within the Kingdom to develop ideas or projects that initiative.
contribute to the conservation of natural resources and environmental
protection in line with the relevant U.N. Sustainable Development Goals
(SDGs). The 2021 competition focused on the COVID-19 response, three SDGs
and the Saudi Vision 2030. Also, the National Centre of Environmental
Compliance participated as sponsor for this year.
02 04
Sadara provides electric heaters to needy Blood Donation
families this winter Campaign
Sadara showed its support for needy families in the Jubail area this winter by Sadara launched a blood donation campaign with Al-Mana General Hospital
donating electric heaters to the Wahaj Association charity. (Jubail). A large number of Sadara employees participated in the campaign
and it was repeated several times.
60 61
Annual Report 2021
05 06
Community support in education & training field Sadara supports the community with
As part of Sadara Internship Program, two batches of student interns were recieved, Ramadan Breakfast
totalling 53 male and female from diploma and bachelor’s degree programs at
Sadara supported Resalah Charity & Wahaj Society, as a part of its CSR
different educational institutions in the Eastern Province.
initiatives to support the local Community during the holy month of Ramadan.
Also, in an effort to advance the qualifications of young Saudi fresh graduates, Sadara
On-Job Training (OJT) Program welcomed 31 people from various industrial, technical
and engineering specializations in the diploma programs. The OJT program continues
for periods ranging from six months to a full year during 20212022- where successful
candidates will eventually be hired as regular employees.
07
Electronic Waste
Campaign
Sadara supported the local community by partnering with RCJ & DAZ Co., to drive
awareness of the Electronic Wastes by providing container to collect these e-wastes.
62 63
Annual Report 2021
08 10
Sadara Children Drawing Contest Sadara active in GPCA Responsible
The Sustainability and EHS&S Corporate teams developed an environmental Care Conference
drawing contest for employees’ children, entitled “Our Green Future.”. The
Sadara played a leading role as a Platinum sponsor of the Gulf Petrochemicals
competition serves to raise awareness among current and future generations
and Chemicals Conference (GPCA) Responsible Care Conference in Riyadh.
about environmental protection and related causes as well as the UN SDGs. This
year’s contest focused on Sadara’s five pillars of the sustainability strategy.
09
Sponsorship of Jubail Saudi
Art Association (GSFT)
Sadara sponsored the Saudi Art Association (GSFT) of Jubail in line with its CSR
initiatives to contribute to the cultural pillar to drive awareness.
64 65
Annual Report 2021
Human
Resources
Annual Report 2021
2,288
74% In House By Vendor
Saudization
Saudi
2021 2021
62,062 4,677
Participants Participants
94
Mentorship
482
Total Passed
4,186
Participants
10,625
Participants
Program Re-certification
68 69
Annual Report 2021
Media &
Communication
Annual Report 2021
Social Media
Performance
+ 27%
Audience
60
Major Corporate Growth
Visits, Events
and Campaigns
Traditional Media
Performance
+ 198%
Media Coverage
Reach
15
Publications
and Reports
Brand
Perception
+ 34%
Overall Positive
Perception
72 73